Perfect Florida Homes

The Florida Supreme Court is reviewing a new proposed constitutional amendment. The citizen initiative would offer property owners tax relief by capping the amount local governments can collect each year.

Read the full story here and here.

Some questions are timeless and reappear regularly.  Well known ones such as “Will you still respect me in the morning” and “Do I look fat in this” have been around forever.  Newer ones such as how to get your website on google reflect the impact of technology.

Almost as sensitive is “why do my property taxes cost so much?”   Its always a problem, seemingly also timeless and international. Its definitely a sensitive issue in Florida right now.

Property taxes are based on the County’s assessment of what your property is worth. So when prices in Florida increased enormously in the years between 2001 and 2006, homeowners experienced monstrous increase in their property tax bills - so much so that there are anecdotal tales of families moving out of Florida to states with less expensive taxes rates. Many of our international clients saw their bills virtually double within the space of three years and began to question the sense in owning real estate in a place where costs were literally out of control.

So, with the recent fall in house prices, the County should factor that into your tax bill for next year and you’ll pay less, won’t you? Well, maybe not. This article explains why you should not have high expectations:

This January, local tax authorities will begin to send out property assessments for 2009, telling homeowners what their property is valued at, and how much their tax bill is.

But many assessments won’t reflect any of the steep home price declines that have been making headlines for the last year or so.

And even if property assessments do drop, property tax bills won’t necessarily be any lower.

“I think you’re going to see a lot more taxpayer protest this year,” said Bruce Hahn, president of the American Homeowners foundation, a non-partisan consumer advocacy group.

Read the whole article and then decide if it’s time to write to your local County Appraiser.

The FHA will no longer allow homebuyers to rent out their current home and use the expected rental income as part of the basis for obtaining a new mortgage to buy another home. Most buyers must now show that they can cover both mortgages unless they have 25-percent equity or provide proof of a job relocation and arrange a one-year lease on their current home. The FHA hopes the new rule - implemented as a temporary measure on Sept. 19 - will prevent buyers from purchasing a less expensive home and abandoning their current mortgage.

Source:
Inman News (09/24/08)
© Copyright 2008 INFORMATION, INC. Bethesda, MD (301) 215-4688

More evidence that the housing market still contains a lot of uncertainties, and not only in Florida: despite price falls which have encouraged buyers, getting that elusive home loan remains a major obstacle:

The price may be right, but if buyers can’t borrow enough, the house isn’t affordable. Difficulty borrowing is keeping many Americans from buying. “The industry went from little or no credit standards to credit standards on steroids,” says Marc Savitt, president of the National Association of Mortgage Brokers.

According to the Federal Reserve Board, about 85% of lenders, worried about falling prices and rising foreclosures, have stiffened requirements for borrowers in the past three months. Those with a credit score of 600 or lower cannot get loans at all, says Keith Gumbinger of HSH Associates, a mortgage information publisher.

Read the whole story here.

Need some background into how Florida property taxes reached the situation its in today?  Try this article, in which the author has set out his views in a straightforward style to help unravel the mysteries.

The same author has also summarized his views on Florida’s economic history and status here.

Tax reform was dealt a setback last week when Amendment 5 was struck from this fall’s ballot. But tax reform groups and supporters, including FAR, say they plan to continue the fight and push for change to a tax system that puts an unfair burden on landlords, snowbirds and business owners.

Read the full story here

Good News on Mortgage Rates?

Mortgage rates fell sharply Monday as investors reacted to the government’s takeover of Fannie Mae and Freddie Mac - exactly what some homeowners have been waiting for.

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Amendment 5, the comprehensive property tax amendment, will not appear on the ballot in November. The Florida Supreme Court heard arguments today before issuing a ruling to remove it. The Court also denied any motion for a rehearing.

Read the full story here